How to Learn about a Home for Sale through the Vendor's Statement
If you're buying a home for the first time, it may be easy to become overwhelmed by the paperwork. However, this is a major transaction, and it's crucial to get everything right, so you can avoid any future issues and move into your new place without worry. One of the most important parts of the documentation is the vendor's statement, so what do you need to know about this piece of paper?
Exchanging Paperwork
You typically get the vendor statement from the seller as part of the disclosure process. It will tell you everything you need to know about the property's title or any potential sticking points you may need to consider before making a decision.
Settling Mortgages
One of the most common disclosures here is the existence of a mortgage. The seller will have taken a mortgage out to buy the property, and until it is settled, the bank or institution has certain legal rights. In the unlikely event that the mortgage could not be settled, you would not be able to take ownership of the property, at least without assuming the debt to the bank.
Of course, most sellers will settle the outstanding mortgage from the proceeds of the sale. Still, there may be other disclosures that could affect your rights as a buyer.
Dealing with Easements
For example, a person or organisation could have a legal right to access your land. This is known as an "easement" and is often held by a utility company if they need to access an inspection point somewhere on your land. On rare occasions, a neighbour may have the right of access in order to reach their land. For example, you may share a common driveway that is technically part of your land, but you must allow your neighbour to use it to get to their place.
Understanding Covenants
Sometimes, you will find a covenant which can restrict how you use the land in question. For example, you may not be able to build another dwelling on the land even if you have the available space, and it sounds like a good idea to you.
Getting Legal Advice
When you engage the services of a conveyancer, they'll ensure that you get the vendor statement and will look carefully at all the details. Should you need any clarification, they'll be able to provide that as well and interact with the seller accordingly.